Socialism

Socialism is an ideology with the core belief that a society should exist in which popular collectives control the means of power, and therefore the means of production. In application, however, the de facto meaning of socialism has changed with time. Although it is a politically loaded term, it remains strongly related to the establishment of an organized working class, created through either revolution or social evolution, with the purpose of building a classless society. It has also, increasingly, become concentrated on social reforms within modern democracies. This concept and the term Socialist also refer to a group of ideologies, an economic system, or a state that exists or has existed.

Socialism and the mixed economy

As remarked above, some self-described socialists, especially those who identify as social democrats, but also including (for example) the reform-oriented Euro-communists (Marxists, but by no means Leninists), advocate a mixed economy rather than a complete re-working of existing capitalist economies along socialist lines. These views also extend to many who would not describe themselves as "socialists."

Related Topics:
Euro-communist - Mixed economy

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In the most moderate formulation of such a mixed economy, collective ownership is typically limited to control of natural resources and public utilities. The rationale for prioritizing these is that natural resources are a common patrimony and that (all or some) public utilities are natural monopolies.

Related Topics:
Natural resource - Public utilities - Natural monopolies

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Others would extend a socialist approach within a mixed economy to what they deem to be essential industries to prevent certain capitalists from having a stranglehold on society, or to prevent massive concentrations of wealth which result in a power imbalance (including disproportionate bargaining leverage). There is also often a rationale of national defense or national sovereignty. Thus, many otherwise capitalist countries have, at least at times, nationalized such industries as steel, automobiles, or airplanes. In the U.S., for example, President Harry S. Truman nationalized the steel mills during the Korean War. They soon returned to private ownership by order of the U.S. Supreme Court, however.

Related Topics:
Steel - Automobile - Airplane - Harry S. Truman - Korean War - U.S. Supreme Court

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All socialist thinkers argue that unrestrained free market economics would generally result in profits for a few at the expense of the many. Communists, in particular, are adamantly opposed to any compromise with capitalism, claiming that any economic system that permits the private accumulation of wealth is inherently unjust and allows capitalists (those who own and control capital) to compel behavior out of individuals due to their own necessity to survive. (see: labor theory of value). As noted several times above, this is disputed by the contemporary Communist Party of China, making China (if it is regarded as socialist or communist) an inevitable exception to much of what follows here. sd

Related Topics:
Free market - Labor theory of value

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While few self-described communists support any scheme upholding private ownership of the means of production (except, perhaps, as a temporary disposition on the way to something purer, and again noting the contemporary Chinese exception), other socialists are split over this, arguing over whether to only moderate the workings of market capitalism to produce a more equitable distribution of wealth, or whether to expropriate the entire owning class to guarantee this distribution. Many socialists acknowledge the extreme complexity of designing other appropriate non-market mechanisms to identify demand, especially for non-essential goods. Some have put forward models of market socialism where markets exist, but an owning class does not.

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In practice, many aspects of the socialist worldview and socialist policy have been integrated with capitalism in many European countries and in other parts of the world (especially in the industrialized "first world"). Social democracy typically involves state ownership of some corporations (considered strategically important to the people) and participation in ownership of the means of production by workers. This can include profit sharing and worker representation on decision-making boards of corporations (a measure in vigour in Germany, for instance). Some inherently capitalist measures, such as stock ownership for workers or stock options would, however, also fit the description. Social services are important in social democracies. Such services include social welfare for the disadvantaged and unemployment insurance.

Related Topics:
Profit sharing - Germany - Stock option - Social welfare - Unemployment insurance

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Likewise, market economies in the United States and other capitalist countries have integrated some aspects of socialist economic planning. Democratic countries typically place legal limits on the centralization of capital through anti-trust laws and limits on monopolies, though the extent to which these laws are actually enforced has to do with the balance of power between the actually existing or emerging monopoly firms, as well as political ties between government and some corporations (crony capitalism). Ownership of stock has become common for middle class workers, both in companies they work for and in other companies (see mutual fund). Labor market pressures (see labor economics) and regulations have encouraged profit sharing. Social welfare and unemployment insurance are mandated by law in the US, UK, Canada and other market economies. There is a lively debate today as to whether the world is moving closer to or farther away from "socialism", as defined by different people. Another component of this debate is whether or not these developments are to be encouraged.

Related Topics:
Anti-trust - Crony capitalism - Mutual fund - Labor market - Labor economics - US - UK - Canada

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